Jordan sees 3.7% rise in FDI inflows in Q3 2024, reaching $457.8m

Jordan’s foreign direct investment (FDI) inflows reached $457.8m during  Q3 2024, marking a 3.7 per cent increase compared to the same period in 2023, according to preliminary data from the balance of payment, according to Central Bank of Jordan (CBJ).

These inflows accounted for 3.2 per cent of the country’s GDP, maintaining a stable share and highlighting the continued appeal of Jordan’s economy to international investors, despite regional challenges.

For the first three quarters of 2024, total FDI inflows to Jordan amounted to $1.3 bn, or 3.3 per cent of GDP. While this represents a decline from $1.6 bn during the same period in 2023, the current figures remain higher than the cumulative FDI recorded in both 2021 and 2022, indicating sustained investor confidence in Jordan’s economic prospects.

According to the report by the Jordan News Agency (Petra), Arab countries contributed nearly half (49.1 per cent) of the total FDI inflows, with Gulf Cooperation Council (GCC) nations making up 31.7 per cent.

European Union countries accounted for 11.5 per cent of the total FDI, with the Netherlands leading the way at 4.9 per cent, followed by France at 3.5 per cent.

Non-Arab Asian countries contributed 7.2 per cent, with China (2.5 per cent) and India (2.1 per cent) being the largest investors in this category.

The remaining 32.2 per cent of FDI came from other regions.

Financial and insurance sector attracted the largest share of FDI into Jordan

In terms of sectoral distribution, the financial and insurance sector attracted the largest share of FDI, accounting for 15.7 per cent of total inflows.

Manufacturing industries followed with 7.7 per cent, while information and communication received 7.5 per cent.

The mining and quarrying sector attracted 7.3 per cent, and transportation and storage garnered 7.0 per cent. Wholesale and retail trade accounted for 6.1 per cent of FDI.

Real estate and land investments by non-Jordanian individuals also represented a significant portion, contributing 14.9 per cent to the total FDI inflows during the period.

The latest figures underscore Jordan‘s ongoing attractiveness as an investment destination, bolstered by its strategic position in the region, growing infrastructure, and efforts to diversify its economy.

Despite global uncertainties and regional instability, the country has managed to maintain steady FDI inflows, particularly from key regional and international partners.

Its government has been focused on enhancing the investment climate and improving economic resilience, making it an increasingly viable hub for international capital.